PRESSURE on David Cameron to take a firmer stance on Europe will intensify today when a cross-party report warns of dangers for the rule of law and the continuing risk of economic collapse.

The European Scrutiny Committee will warn that the latest bid to save the euro may be “politically impossible to enforce” and describe the Government’s position as “profoundly unwise”.

It is concerned that member states that have signed up to the Stability, Coordination and Governance Treaty (SCG) have set “a dangerous precedent in seeking to attain their political objectives irrespective of the rule of law in the EU”.

The Prime Minister vetoed a formal EU treaty in December but other member states agreed their own treaty.

The committee members, who include Labour Llanelli MP Nia Griffith, are concerned that while the UK Government has reservations about what has been done its response remains “unsatisfactorily unresolved”.

The committee is concerned because: “[It] appears that the Government does not want to stand in the way of 25 states reinforcing the eurozone, but sees the use of the institutions outside the EU treaties, without the consent of all 27 member states, as unlawful, irrespective of the consequences to and the lack of concessions for the United Kingdom and the current failure to take the issue of legality further. To the committee it therefore seems that the SCG treaty must be deemed unlawful in the Government’s view.”

Bill Cash, the chairman of the committee and a prominent Conservative eurosceptic, said: “Politically and legally, it is profoundly unwise for the Government to suggest taking action, and then not to explain how it intends to carry it through, or what concessions are now being sought and achieved. The approach to this treaty provides further and ever more disturbing evidence of the European Union, in the context of increasingly coercive attitudes by Germany and France and the European establishment in pursuit of further and deeper political and legal integration, dangerously ignoring its own precepts for political ends.

“This is despite France and Germany’s own original failure over the stability and growth pact. The Government must clearly state as soon as possible what action it now intends to take on the treaty.”

Labour’s Ms Griffith said: “There are an enormous number of developments going on in Europe at the moment and although we are outside the eurozone area we need to keep up to speed with what is happening and we need to be aware of what’s going on because at the end of the day people in Britain feel very strongly they understand the benefits of being in Europe but they don’t want to move to greater integration.”

In a statement, the committee said: “The Stability, Coordination and Governance (SCG) treaty does little towards solving the eurozone crisis, other perhaps than providing some comfort to international markets... Moreover it is possible that the treaty will prove to be politically impossible to enforce.

“As undesirable as it may be, some form of breakdown of the eurozone clearly remains possible... The SCG Treaty would have been an EU treaty but for the veto. However, the EU institutions and the governments of the 25 member states who have signed the treaty, have embarked on a dangerous precedent in seeking to attain their political objectives irrespective of the rule of law in the EU.

“The Government has made clear that it has serious reservations about the legality of what has been done, but the question of what it intends to do remains unsatisfactorily unresolved.”

It continued: “Although questions have been raised as to what the UK achieved by the use of its veto, the committee concludes that the veto was justified because of the very real concerns about a breach of EU law, even if this was not the reason given exclusively for the use of the veto in the first place. The committee notes that there is an increasing tendency for the EU to propound the virtues of the rule of law but not to apply it in practice.”